The Compass vs. Zillow Battle: What San Francisco Buyers and Sellers Need to Know

Clay Gjevre
10 hours ago
3 min read

by Clay Gjevre

The real estate world is facing a serious power shift—and if you're buying or selling in San Francisco, it's worth paying attention. A legal clash between Compass and Zillow is shaking up how homes are marketed, who sees them, and what platforms get the spotlight. And the National Association of Realtors (NAR)? Caught in the crossfire.

What's Happening?

Compass—one of the largest residential brokerages in the U.S.—is suing Zillow, accusing the platform of anti-competitive practices. Why? Zillow recently implemented a rule that if a home is marketed anywhere else, it must also appear on Zillow within 24 hours—or it gets removed from their site.

Meanwhile, Compass announced it’s pulling out of NAR’s Clear Cooperation Policy altogether. That policy requires listings marketed publicly to be added to the MLS within one business day. Compass says these restrictions hurt seller flexibility. Zillow says they’re protecting consumers’ access to listings.

What Are Private Listings—and Why Do They Matter?

At the heart of the fight is Compass’s “Private Exclusives” model. This off-market strategy allows listings to be shared only with Compass agents first—before hitting the public. It works like this:

Phase 1: Private Exclusive – available only within Compass
Phase 2: Coming Soon – visible on Compass.com
Phase 3: MLS + Zillow – shared publicly

While Compass claims this gives sellers more control and privacy, multiple studies show a clear downside: MLS listings sell for 13–18% more than private listings, and off-market deals take 85% longer to sell.

In high-demand neighborhoods like Noe Valley, Bernal Heights, and South Beach, that kind of exposure—or lack of it—can mean the difference between a fast, high-dollar sale and a missed opportunity.

Why San Francisco Sellers Should Pay Attention

If you’re thinking about listing your home in San Francisco, you might be offered a private listing strategy. It can sound appealing—less prep, more discretion—but there are trade-offs.

Pros of private listings:

Flexibility and low-pressure testing
Potential for quiet, agent-to-agent sales
Avoiding open houses or public days on market

Cons:

Limited exposure = fewer offers
Potentially lower sale price
Risk of being banned from platforms like Zillow under new policies

As a top real estate agent in San Francisco, I’ve done private off-market deals myself. They can be a smart strategy—if they’re right for the seller’s goals. But in most cases, the open market brings more buyer competition, stronger offers, and better overall results.

Why This Lawsuit Could Reshape the Industry

This isn't just a Compass vs. Zillow issue. It's a fight about control—between traditional brokerages, new tech platforms, and the associations that set the rules. And if Compass walks away from NAR, other brokerages might follow.

We could be headed toward a market where platforms like Zillow have more influence than MLS systems, and where agents need even stronger networks to access the full picture of what’s available.

Final Thoughts: What You Should Do Now

Whether you're a San Francisco Seller or Buyer, this shift impacts how you access or market real estate. In a competitive, tech-driven market like ours, visibility and strategy matter more than ever.

If you're navigating this change, work with a top San Francisco real estate agent who knows both the traditional and off-market playbooks. I help sellers maximize their value and buyers find opportunities—even the ones you won’t see on Zillow.